Today was billed as one of the most eagerly awaited days in British banking history, as Mark Carney (the first foreigner to has head the Bank of England) announced the UKs Interest Rate Decision. The markets were expecting change, and this had been priced in. What actually happened was a negative statement. This release resulted in BIG STERLING WEAKNESS. The statement indicated that interest rates could change, and that the UK economy was going to get worse still. This is different from the positive view built in recently, after good PMI and construction figures.
Following the UKs Interest Rate decision was the European Central Banks (ECB) Interest Rate decision. The rate wasn’tchanged, but in the following conference with the head of the ECB (Mario Draghi), comments on more stimulus being needed were made, which subsequently weakened the euro, and helped GBPEUR traders re-gain losses seen earlier in the day.
With a movement today of nearly 2 cents within 3 hours, it again shows how volatile the FX market can be. I offer a pro-active service, highlighting these movements to clients as to when they could happen. I personally have helped a number of clients today to buy at the best price. One client saved over £6,000 on their transfer, by buying at the best price on their property purchase in Europe. This is a service that most traders could benefit from, and is offered to everyone. If this is of interest, feel free to email me – [email protected]
If you would like to be included in future SPIKE Notifications, you can also register via submitting your details via email to [email protected]